So, you’ve decided to buy a CD with the longest term and the highest return possible.
The best 7- and 10-year CD rates offer a combination of high rates and moderate early withdrawal penalties in case certificates of deposit begin to look more attractive in the coming years.
But get these rates fast, as some of the best deals have ended this month.
Here are the best long-term CD rates I’ve found.
10-year CD rates
Several banks at the beginning of the month offered 10-year CD rates that yielded 3% or more. Now there is just one:
Discover Bank (www.discoverbank.com), the online bank owned by the credit card company, with a $2,500 minimum deposit. Discover charges an early withdrawal penalty of nine months’ interest.
These CD rates are nationally available and beat the best 5-year rates on our CD Rates Leaderboard by a half a percentage point.
7-year CD rates
I also found a number of institutions that offer decent 7-year CD rates:
Security Service Federal Credit Union (www.ssfcu.org) pays 3.50% APY with a $100,000 minimum deposit, 3.45% APY with a $50,000 minimum, 3.40% APY with a $25,000 minimum and 3.35% with a $500 minimum. It charges an early withdrawal penalty of between 90 days and one year of interest.
You must be a resident of Texas or Colorado and become a member of this San Antonio-based credit union to purchase these CDs.
Randolph-Brooks Federal Credit Union (www.rbfcu.org) pays 3.40% APY with a $75,000 minimum deposit, 3.35% APY with a $20,000 minimum, 3.30% APY with a $5,000 minimum and 3.25% APY with a $1,000 minimum. It charges a hefty early withdrawal penalty of 420 days of interest.
You must live or work in the Austin and San Antonio areas to be eligible to join this credit union and buy these CDs.
Navy Federal Credit Union (www.navyfederal.org) pays 3.00% APY with a $20,000 minimum and 2.90% APY with a $1,000 minimum deposit. It charges an early withdrawal penalty of up to one year of interest.
Membership is open to members, reservists, retirees and annuitants of the Army, Marine Corps, Navy and Air Force. Army and Air National Guard personnel are also eligible, as well as civilian employees and contractors of the Department of Defense and their family members.
Pentagon Federal Credit Union (www.penfed.org) pays 2.75% APY with a $1,000 minimum deposit. It charges an early withdrawal penalty of one year of interest.
Anyone can join PenFed regardless of where they work or live. If you don’t qualify for PenFed through military service or your job, you can still become a member by joining the National Military Family Association.
Once you reach an early withdrawal penalty of a year or more, it could cut into your earning power if you close your account before maturity. So consider whether you plan to stick it out before you purchase a CD that has a big early withdrawal penalty.
As always, you can compare these offers with the best CD rates in our extensive database.